No one is immune to sudden monetary needs – all of us encounter these situations once in a while. Most of the time, the average person already has a lot of work to do just managing his income and the regular expenses. When an extra expense comes up – one that is not within they regular budget – it could be quite a stressful thing.
One of the easiest ways to deal with situations like these is to take out a payday loan. A payday loan is a short term loan that has been designed to meet the unexpected needs of consumers. Being a short term loan, a payday loan can be acquired as quickly as several hours to a few days. This is one of the best selling points of a payday loan. On the other hand, being a short term loan also means that the borrower has to pay back the entire loan amount within a relatively short period of time. This could be anywhere from 2 weeks to a month or so.
Another good thing about a payday loan is that payday loan lenders normally operate online. This means that everything is done electronically, lessening the processing times and doing away with the other hassles associated with conventional loans. More than this, the web site of payday loan lenders are open 24 hours, meaning you can send in your application anytime you want – even an the dead of the night.
What does one need to avail of a payday loan? Different lenders have different requirements but most of them need only the most basic of things. Some of the most important things to bear in mind:
-You have to be a citizen or a resident of the USA
-You have to be at least 18 years of age
-You have to have a stable source of income (this could be a job or your own business) and be able to prove it
-You have to have a current bank account.
If you are a first time borrower with a payday loan lender, you might be asked to send in a couple of documents for verification. This might include proof of ID such as your driving licence. For returning borrowers, though, additional documentation is normally not required anymore.
How about the repayment terms? Payday loan providers do not charge interest in the same way that conventional lenders do. The way they do it is to charge a fixed amount for every certain amount borrowed. Again, this amount varies from one lender to another but for example, you might get charged $20 for every $100 borrowed. So for a $500 loan, you will have to pay $100 in charges. The repayment period could be chopped up into two paydays or even more. If you extend your repayment period beyond the normal period that they stipulate, though, you would have to pay extra in charges. So the idea is to borrow only what you can repay within the indicated period so that you won’t have to burn another hole in your pocket because of the charges.…